NuScale Power (SMR) saw its stock price surge 13.54% to close at $11.74 on Thursday, the last trading day before U.S. markets closed for the Juneteenth holiday. The jump came after the company awarded a contract to Paragon, part of Mirion Technologies, to complete design work on the Highly Integrated Protection System for its small modular reactor (SMR). The project includes protection, accident monitoring, and control-room habitability systems, which NuScale CEO John Hopkins called "essential to safe and reliable plant operations."
The contract marks a step forward for NuScale, but the company still faces substantial risks. In the first quarter, NuScale reported revenue of just $565,000, a steep drop from $13.4 million a year earlier, while its accumulated deficit has grown to $776.9 million. The company ended the quarter with $341.1 million in cash and cash equivalents, plus $549.0 million in short-term investments, and no debt. It also has $962.1 million available through its at-the-market stock offering program, which could lead to dilution for shareholders.
NuScale's stock has been driven more by progress on its design and deployment prospects than by near-term earnings. Thursday's move pushed the stock up about 19% for the short week, from last Wednesday's close of $9.89. Trading volume picked up Wednesday and Thursday as investors reacted to the Paragon deal, which is a design-development contract rather than a plant sale or guaranteed revenue stream.
The broader market also rallied Thursday, with the S&P 500 gaining 1.1%, the Nasdaq rising 1.9%, and the Russell 2000 jumping 2.1%. NuScale's gain far outpaced these indices, reflecting the speculative nature of the stock. However, risks remain significant, including project delays, limited supply chains, reliance on customer funding, competition from other reactor designs, and potential dilution from future share sales.
NuScale's SMR design, rated at 77 megawatts of electric output, received final standard design approval from the U.S. Nuclear Regulatory Commission in May 2025. The company is working with partners such as ENTRA1 and the Tennessee Valley Authority to plan for up to 6 gigawatts of capacity. However, competition is intensifying, as Swedish utility Vattenfall recently selected Rolls-Royce SMR over GE Vernova for a nuclear project, signaling growing interest in SMRs from multiple vendors.
Looking ahead, traders will be watching Monday's market open to see if Thursday's high-volume move holds. The core question for NuScale remains whether it can turn design work into actual deployment, with speed and cost being key factors. The Paragon contract is a positive sign, but the path to commercial viability is still uncertain.
